Davis Wright Tremaine, StartupLawBlog and Greenline Legal have teamed up to make a powerful tool available to the startup community. It allows you to compare the provisions of your term sheet side-by-side to a number of widely recognized standards.
The assessment helps you:
Quickly focus on critical issues.
Better understand the terms in a complex deal.
Become a more effective and persuasive negotiator.
You’ve just received a term sheet for your seed round. It looks pretty good, the investor seems honest and as a startup, you really, really need the funding. But how do you understand the sort of deal you’re getting?
Entrepreneurs and investors are demanding simpler, faster, less expensive ways to document seed rounds. This is driven in part by deal sizes, which are getting smaller. For a typical deal, early-stage funding terms should be fairly straightforward. But how can you tell if the deal being proposed is a good one? How can you use technology to help you?
Fortunately, there are widely-used models out there to make things easier, and by understanding them, your negotiating power is improved considerably. Your arguments are much more persuasive if you can point to a well-recognized precedent. But how do you find these precedents?
This website is made available by the lawyer or law firm publisher for educational purposes only as well as to give general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the website publisher. The website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.